NewsCorp Profits in the First Quarter

Global media conglomerate, NewsCorp (ASX:NWS) have posted a profit for their first quarter (Q1) of 2010/11 financial year of $US775 million ($A777.49 million) for the three months to September 30, 2010, up 36 per cent from $US571 million ($A572.83 million) in the prior corresponding period, NewsCorp said in a statement on Thursday. First quarter total segment operating income, or earnings before interest and tax (EBIT), was $US1.15 billion ($A1.15 billion), up eight per cent from $US1.06 billion ($A1.06 billion) from last year. The guidance is unchanged from what that announced at News Corp's full year earnings release in August.

Chairman and chief executive Rupert Murdoch said in a statement: "Our global cable network programming business continues to lead News Corporation's financial and operational momentum. With continued subscriber growth in new and established channels throughout the world, and a global advertising recovery, our domestic and international channels now account for 25% of our revenues, and uniquely position us for profitable expansion of these franchises in the years to come. At the same time, our Television segment enjoyed significant operating income growth compared to the first quarter a year ago as local ad markets continue to rebound."

MySpace had a poor performance on the "Other" business segment, which reported a first quarter operating loss of $US156 million, $US30 million greater than the prior corresponding period.

NewsCorp owns news agency Dow Jones, MySpace, 20th Century Fox movie studios, Sky Italia and newspapers in Australia, the UK, the US. Twentieth Century Fox Television had higher syndication revenue from How I Met Your Mother and home entertainment sales from Glee, Sons of Anarchy and Modern Family.